SuperData, a provider of market intelligence on playable media and digital games, its report, What Western Publishers Need to Know About the Asian Mobile Market 2016. Asia has 1.2 billion mobile gamers and controls 55% of the $24.9 billion in worldwide mobile games revenue. The “Big Three” of China, Japan and South Korea currently control 90% of the region’s mobile earnings.
Mobile gaming is especially prevalent in Asia and is responsible for 47% of the region’s digital gaming revenues versus 41% globally. SuperData’s report provides insights on the Big Three and the emerging markets of India, Indonesia, Malaysia, Vietnam, Hong Kong and Singapore. The report also highlights player preferences in India’s fast-growing mobile games market. Findings include that two thirds of mobile gamers play racing games, making them the country’s top mobile genre, and that only 3% of the country’s mobile gamers are age 45 or older.
“While China, Japan and South Korea are too big for western publishers to ignore, Asian game makers like Tencent, Gungho and Netmarble dominate the top-grossing charts by serving local tastes,” SuperData CEO Joost van Dreunen said. “Countries like India have yet to develop a large homegrown game industry, but have strong revenue potential as local telecom operators have started lowering their rates. Western game makers who establish an early foothold in these regions will see major payouts in the next few years as spending in these markets grows.”
Other key findings from the What Western Publishers Need to Know About the Asian Mobile Market 2016 report include:
- Japan is the world’s largest mobile games market, with $6.2 billion in 2015E revenue. Despite having fewer players than China or the U.S., Japan has the highest average mobile games spending of any major country.
- China has 785 million mobile gamers, 62% of Asia’s total. Asia’s second-biggest mobile games market is volume-driven, as China has the lowest conversion rates and average spending of the “Big Three.”
- India is Asia’s fastest-growing mobile games market, with revenue more than doubling from $416 million in 2015E to $1.2 billion by 2018E. India’s mobile games market has ample room to expand as the country’s smartphone penetration rate is still low and the country’s payment infrastructure remains underdeveloped.
- Android controls 73% of China and Korea’s combined mobile revenue. Google’s operating system enjoys a large lead over iOS in both countries thanks to local brands like Xiaomi and Samsung utilizing the platform.
- Through 2018E, emerging markets will account for 46% of Asia’s mobile games revenue increases. Revenue growth is slowing in China, Japan and South Korea growth as the countries’ smartphone markets become saturated.
The report also shines a light on the unique publishing landscapes of China, Japan and South Korea, where publishers face challenges that are not a factor when releasing games in the west.
Source: Superdata
